Auto Insurance Frequently asked questions

Here are answers to frequently asked questions about Auto Insurance.

What is Auto Insurance ?Motor vehicle insurance, often known as automotive insurance, is a contract in which the insurer bears the risk of any loss incurred by the owner of a vehicle as a result of property or person damage caused by an accident. Also referred to as Car Insurance.

Why should I insure my automobile (Car) ?Getting a comprehensive insurance policy protects your vehicle from damage caused by accidents, fire, theft, cyclones, and floods, among other things. It also includes coverage for third-party liability. Furthermore, it is compelled by law to do so.

What is "No Claim Bonus"?No Claim Bonus (NCB) is your bonus for driving or riding carefully and not making a claim. You get a discount on your premium. Starting from 20% going all the way to 50%. So be careful on the road. If any claim is made, however small, the no claim bonus is lost.

What is deductible?The amount above and above the claim payable is referred to as the deductible or "excess." This cost rises as the vehicle's cubic capacity/carrying capacity increases. In limited instances, depending on the age of the vehicle or the frequency of claims, the insurer may charge an extra excess.

When should I buy car insurance?Before purchasing a vehicle, you need purchase auto insurance. Driving without insurance is typically unlawful, and it exposes you to financial risk in the event of an accident.

Where can I buy car insurance? Car insurance can be purchased through individual insurance agents or firms, or from an independent broker who represents a variety of companies. By comparing vehicle insurance rates and ensuring that they are getting the greatest bargain on the coverage they require, Car owners can save money.

Does my vehicle determine my car insurance rates?Yes. Your auto insurance prices are influenced by the make and model of the vehicle you drive. The cost of your vehicle also matters; the more it costs to repair or replace your vehicle, the more you'll have to pay for insurance.

What does car insurance cover?Your automobile insurance coverage is determined by the policy you select, however a typical policy includes the following:

Bodily injury (BI) and property damage (PD) liability coverage for damage caused to other people or property.

Personal injury protection (PIP) to cover medical expenses and other damages.

Collision and comprehensive coverage for damage done to your vehicle in collisions, and in non-collisions (i.e., fire, vandalism, or theft).

Uninsured and underinsured motorist (UM/UIM) coverage protects in the event of an accident where the at-fault driver doesn’t have insurance.

What does car insurance not cover?Car insurance is excellent for paying the price of repairs after an accident, but it does not cover the costs of normal wear and tear. That means that when you take your car in for an oil change or tire rotation, you are responsible for the cost.

Personal possessions stolen from your automobile and any damage that exceeds the limitations of your policy are examples of things that aren't covered by car insurance.

Does my car insurance cover other drivers?It is contingent on the circumstances and the terms of your policy. An "omnibus clause" in your policy may cover any driver who has permission to use your car (known as permissive drivers). If your car is driven by an insured driver who isn't included in your policy, your insurance will be primary, and theirs will be secondary.

I don't own a car, so can I get a car insurance?Yes, non-car owners who frequently drive other people's cars can purchase a non-owner policy that provides basic liability coverage to ensure they are protected in the event of an accident. Other coverage, such as uninsured motorist coverage or MedPay, may be included in a non-owner policy.

I don't own a car, so can I get a car insurance?Yes, non-car owners who frequently drive other people's cars can purchase a non-owner policy that provides basic liability coverage to ensure they are protected in the event of an accident. Other coverage, such as uninsured motorist coverage or MedPay, may be included in a non-owner policy.

What is collision coverage?Collision coverage compensates for damage to your automobile in the case of an accident, regardless of who is at fault, including collisions with other vehicles and collisions with fixed objects such as trees or telephone poles. As part of a full coverage insurance policy, collision coverage is usually sold alongside liability and comprehensive coverage.

What is the consequence of not having an auto insurance?You will almost certainly face legal consequences if you opt to drive without vehicle insurance. You may receive a citation, have your license suspended, or possibly face jail time. If you are at fault in an accident and do not have liability insurance, you will be held legally responsible for all damages you cause, and you will be expected to pay for them out of your pocket.

What insurance is required by law?Insurance requirements differ greatly from one state to the next. Whereas one state may only require PIP insurance and a small amount of property damage liability, another state may require significant amounts of liability coverage, as well as uninsured motorist coverage, PIP, or MedPay.

Does car insurance cover rental cars?Your own Car Insurance will most likely cover you in a rented automobile, but only to the extent that your auto policy protects you. If you only have liability insurance, you have two options: contact your insurance agent to have your policy modified to include full coverage while renting a car, or purchase additional insurance through the car rental business.

What is comprehensive coverage?Damage to your car caused by something other than an accident, such as theft, vandalism, fire, natural catastrophes, falling items, and animal damage, is covered by comprehensive insurance. As part of a complete coverage insurance policy, comprehensive coverage is usually sold with liability and collision coverage.

what is rideshare insurance?Ridesharing insurance is a sort of car insurance that bridges the gap between your rideshare employer's commercial car insurance policy and your personal car insurance.

Do I need rideshare insurance?People who drive for rideshare applications like Uber and Lyft need obtain a ridesharing policy or endorsement because their personal vehicle insurance does not cover them while they are using their car for work. Although many ridesharing firms provide some coverage for their drivers, not all of them do, and some only provide partial coverage, therefore rideshare drivers should acquire additional coverage.

What is gap insurance?Car insurance is paid out based on the current worth of your vehicle. Because many cars lose value quickly, you may find yourself owing more on a loan than the car is worth after it has been totaled in an accident

What is personal injury protection (PIP)?PIP, often known as no-fault insurance, pays for your medical bills if you or your passengers are harmed in an accident, regardless of who is at blame. After an accident, PIP insurance covers medical bills, lost earnings, burial costs, and other critical services. In no-fault states, PIP coverage is required. Read Virtual Card that Works For Nigerians